The world’s largest jewelry retailer says it will “break away from dependence on silver jewelry,” shares surge 16%.

Pandora, the world’s largest jewelry retailer by sales, saw its shares surge 16% on Thursday after the company announced plans to reduce its reliance on silver and launch platinum-plated jewelry products. This strategic shift aims to counter the impact of sharp fluctuations in silver prices on the company’s profitability.

Berta de Pablos-Barbier, who became CEO just a month ago, said in an interview with CNBC that by introducing platinum-plated materials and expanding the product portfolio, the company will be able to maintain margins at above 20%. She emphasized that currently about 60% of business depends on silver, “We must decouple the company from silver trading prices.”

Silver prices have soared more than 150% over the past year, rising from around $30 per ounce to about $73 now. Analysts previously warned that sharp fluctuations in silver prices pose a “serious problem” for the Danish jeweler, whose stock has fallen roughly 60% in the last 12 months.

The company also released its quarterly report, forecasting organic growth in 2026 as essentially flat, ranging from -1% to +2%, with EBIT margin expected between 21% and 22%.

Silver Price Volatility Impacts Profit Visibility

Jefferies analysts noted on Tuesday that given recent trends in silver prices, investors remain cautious towards Pandora. “Challenges in recent months mean that even in a more normal silver price environment, the company’s valuation will remain well below levels from a year ago.”

Pandora stated in its financial report that it will reduce reliance on individual metals by diversifying its metal mix. De Pablos-Barbier stressed that expanding the range of metals will help the company escape the trouble of silver price volatility.

Citi analysts noted: “Extreme inflation in precious metals prices has severely lowered profit visibility. The volatile macro context in the US and European markets (which account for about 80% of sales), as well as signs of brand fatigue and overall weakness in jewelry consumption, further undermine recent confidence.”

Weak US Market Demand Drags Performance

In the fourth quarter, Pandora’s organic growth was 4%, but demand in the US market—which accounts for about a third of its business—remained persistently weak. De Pablos-Barbier said: “The reality is, we are seeing consumer confidence in this market at its lowest level since the 1960s.”

Same-store sales growth was flat in both the fourth quarter and the first month of 2026. Citi analysts noticed this is the first negative same-store sales growth for Pandora’s “Fuel with More” segment since the end of 2022. This segment focuses on expanding from traditional charms to rings, necklaces, and lab-grown diamonds.

The company’s organic growth for 2025 was 6%, as pre-announced in January, lower than last year’s 13% and missing the company’s own guidance of 7% to 8% growth. De Pablos-Barbier said the company will rejuvenate the brand and launch new products to keep US consumers loyal.

Risk Warning and DisclaimerThe market involves risks, investment should be cautious. This article does not constitute personal investment advice, nor does it take into account the individual investment objectives, financial situation, or needs of any particular user. Users should consider whether any opinions, views, or conclusions in this article are suited to their circumstances. Investment is at your own risk.